Sony HDR-CX7 M2T file format not recognized

[peters_email@yahoo.com]

I have a new Sony CX7 AVCHD camera and the export to my PC is in M2T file format extentions. When I tired the demo version of VideoStudio 11 (I need to decide if it can edit AVCHD properly before I buy) it does not recognize the file format to drop into my timeline. Am I doing something wrong? I imported the file off the camera via Sony tools and am running on Vista. VS11 require me to import using only its tools?